PRICING IN THIS ERA
Pricing is what that brings revenue to a business. A well designed and branded product can still have a premium price, while the customers will still prefer to buy their brand.
CHANGING PRICING ENVIRONMENT
Technology advances have brought numerous changes in pricing along with the economic recession happened in 2008-2009. The human behavior of the millennial has brought changes in the consumption level and tastes and preferences. Burdened by financial demands they restructure their preferences frequently. And hence, the following pricing strategies came into action.
Sharing Economy: The millennial now does not prefer to own but they rather prefer to get access to the assets. This is where this system holds its importance. They are of two types :
Bartering: This is one of the old ways of acquiring Goods and is making its come back. It is a win-win strategy approach. for instance, clothing apparel is booming where branded clothes which are in good condition are exchanged for new clothes. The same applies to toys and other objects.
Renting: This sector is really exploding. The ownership of the product is for a limited period and the product is back to the original owner. This is both a cost-saving and eco-friendly method for considering vehicles and other gas emitting bodies.
PRICING IN DIGITAL WORLD
Pricing always goes in hand with negotiation. Be it a pencil or a car, the buyer and seller negotiate on the price of the product. Initially, it was the choice of the sellers, who owns the product, since there was scarcity in resources. But then after it moved to the hands of the buyer. And now with technological advancements, it has gained the importance of both the buyers and the sellers. The Internet has been changing the way things are being dealt with the buyers and sellers need not come to a common market place to negotiate and exchange a product. All it needs internet connectivity and transformation of information with the quoted price.
Buyers can :
Get instant price comparisons from numerous sellers: customers can compare their prices being at one place by clicking various websites specially designed for comparisons. one such example is mySimon.com.
Check price at the point of purchase: customers decide at the stores if they have to buy that product or not. They use the internet to compare the product at the retails shops and negotiate with the retailer to reduce the price.
Name their price: the buyers quote the price on the internet and the interested sellers can contact them if they can provide with the price quoted by the buyer.
What if all be on the sides of the buyers? Will sellers not be in loss?
And yes even sellers can :
Give certain customers access to special prices: The sellers can give products at a lower price to those who are their prime customers. This attracts people to both become a prime member which also costs, adding to the purchase of the product.